Centre again offers LNG supply for Delhi's power plant

As Delhi battles the tag of being one of the most polluted cities in the world, the Centre today renewed its offer to supply natural gas to the city's stranded power plant to help switch from the polluting coal-generated electricity.PTI | June 24, 2016, 06:44 IST

New Delhi | June 23: As Delhi battles the tag of being one of the most polluted cities in the world, the Centre today renewed its offer to supply natural gas to the city's stranded power plant to help switch from the polluting coal-generated electricity.

Oil Minister Dharmendra Pradhan said his ministry had offered to supply natural gas to the Bawana power plant at a price of USD 7.5-8 per million British thermal unit, that will help generate power at less than Rs 5-6 per unit Delhi pays for getting electricity from the coal-based Badarpur power station.

"I had written to the Delhi Chief Minister offering him to supply LNG. He wrote back to me but did not address the core issue (of taking gas)," he said.

The minister further said: "If they shut (coal-based) Badarpur power station, it will help cut pollution equivalent to not plying cars for 17 years."

Delhi, he said, has a power demand of 6,500 to 7,000 MW. Decades-old Badarpur power plant supplies 350 MW.

The 1,500 MW Bawana power plant in Delhi has been operating at less than a fifth of its capacity for the past four years. The plant was to be commissioned before the 2010 Commonwealth Games but was delayed by an year.

"Even buying LNG from spot market would be more cost effective for Delhi," he said.

The slump in international energy prices has meant that liquefied natural gas (LNG) in international market is available at USD 5-6 per mmBtu. The price after including shipping cost, taxes and pipeline transportation comes to USd 7.5-8 per mmBtu.

"LNG is available in abundance in the international market," he said.

Pradhan said the government was looking at extending use of CNG beyond cars and autos. Pilot for CNG-run two-wheelers was started today and efforts are on to promote its use in long-haul trucks, buses and railways.

The Centre is committed to making available CNG across the country so that clean fuel is accessible at the doorstep, he said.

He said that CNG corridors across Delhi Mathura Agra- Lucknow Bareilly, Delhi Chandigarh, Delhi-Jaipur and Delhi Haridwar would be operational shortly so that the vehicles can run long distances on CNG.